Tech Data entered into a second amended and restated revolving credit agreement with Bank of America as administrative agent, swing line lender and L/C issuer.

The facility supports Tech Data’s interest purchase agreement with Avnet to acquire all the shares of AVT Technology Solutions and another company formed by Avnet, which will hold all assets and liabilities primarily relating to Avnet’s technology solutions business.

The company repaid in full the outstanding amounts under the existing revolving credit agreement without any early termination penalty or prepayment premium.

The agreement provides a $1 billion revolving credit facility with a maturity date of November 2, 2021. The facility may be increased up to $1.25 billion, subject to certain conditions.

The interest rate is based on LIBOR plus a predetermined margin that is based on the company’s debt rating. The obligations of the company under the agreement are guaranteed by its significant domestic subsidiaries, subject to certain exceptions.